MR. McCLELLAN: All right, just a couple of things to begin with.
The President had a good discussion this morning with the congressional leadership, the bipartisan congressional leadership. It was an opportunity to talk about a range of issues, including the President's upcoming trip to Europe. So the President appreciated the opportunity to sit down and visit with the bipartisan leadership this morning.

At the conversation on Social Security today -- I think you have
the fact sheet already, but I wanted to bring to your attention on the
panel today will be former Democratic Congressman Tim Penny. I think
that this is an example of leaders on both sides of the aisle who
recognize the importance of addressing the problems facing Social
Security and working to find a bipartisan solution and doing so this
year. So I just wanted to bring that to your attention.

Also, the President's bipartisan advisory panel on tax reform is
holding their first meeting today at the Ronald Reagan Building. That
was set to begin at 10:00 a.m. this morning. And I think that's really
all I have to begin with.

Q What happened in Iran today, with that explosion? Have you determined what caused it?

MR. McCLELLAN: No, we've seen the reports and we're looking into
them. I think you all have seen the reports coming out of the Iranian
News Agency, as well, saying that it might have been a fuel tank
falling out of an airplane. So that's what we know. We've been looking
into it.

Q And did you see the reports that Iran and Syria apparently now are saying that they're going to have some sort of cooperation with each other, because of what the U.S. is doing? You know, what -- how, you know, concerned are you about that?

MR. McCLELLAN: Yes, I saw the statement, I guess, from an Iranian
official in news reports. I'm not sure exactly what their referring
to, from the comments that I saw. But our views are very clear on
Syria and Iran. The President expressed those views again in the State
of the Union address, when he talked about both countries. But you say
they were talking about the United States?

Q They were saying they were going to --

MR. McCLELLAN: Because from what I saw, it wasn't clear.

Q The story that we had was that they were talking about
cooperating with each other because of the actions that the United
States is taking against them.

MR. McCLELLAN: If they're talking about the United States, you
know, I think that it's a fundamental misreading of the issue. Their
problem is not with the United States, it's with the international
community. Both Syria and Iran have international obligations and they
need to abide by the commitments they have made to the international
community.

MR. McCLELLAN: Well, yes, I expect they'll talk about that, as
well as other priorities going on in Congress. But they just started
visiting a few minutes ago, I think.

Q So there are a couple reports about Greg Mankiw stepping down at the end of the week, and Ben Bernanke, the leading contender. Can you tell us anything about whether Bernanke is the lead contender for CEA --

MR. McCLELLAN: No, I won't speculate on personnel matters. But we
do have Greg's letter of resignation that is available; if you all want
it, you can get it from our office. The President greatly appreciates
the job that Greg Mankiw has done serving as head of the Council of
Economic Advisors. He has done an outstanding job. I think Greg made
it known when he began his service that he intended to serve for two
years and then return to Harvard, to continue his teaching. And we
have his letter of resignation, if you want to see that. But,
obviously, we're moving to name a replacement and I expect that would
be soon, but I won't characterize it beyond that.

Q Do you have any comment on the reports that the U.S. --
accusations by Iran that the U.S. is flying spy planes over?

MR. McCLELLAN: I talked about this the other day, and I don't
really have anything further to say on it, than what I said
previously.

Q Is there any new information at all on who was behind the
attack in Lebanon, anything new?

MR. McCLELLAN: No. From our standpoint? Well, I mean, what's
new, I guess, was the statement that was put out by the President of
the United Nations Security Council. It was a strong statement that
was -- that received unanimous support. It essentially talked about
the importance of it being fully investigated and those who are
responsible being brought to justice. And it talked about the
importance of countries abiding by Security Council resolutions.

It also pointed out the importance of the Secretary General
preparing a report looking at the causes and circumstances involving
this brutal terrorist attack. It was a horrible attack and we want to
see it fully investigated; we want to see those who are responsible
brought to justice.

Q Scott, Greenspan is testifying today and he's expected to get
a lot of fiscal policy questions. What do you -- what will your
response be to the charges that although you plan to bring the deficit
down, you cut it in half in five more years, that the longer-term issue
of Social Security solvency hasn't been fully addressed with a detailed plan?

MR. McCLELLAN: Well, that's why you've heard the President often
talk about the twin deficits that we face. And the President has made
it very clear that we need to address our long-term unfunded
liabilities -- and that's Social Security and Medicare. We took an
important step to reform Medicare and modernize it and bring some cost
controls to the program. And the President, again, is talking today to
the American people about the importance of strengthening Social
Security and making it permanently sound. And we've talked about how
people are going to look favorably upon action that will address these
unfunded liabilities. And that's important.

We've also made a commitment to continue working with Congress to
exercise even greater spending restraint. Our economy is growing
stronger. We've seen increased revenues coming in to the Treasury.
And that helps address the deficit issue. But the deficit-reduction
plan that the President has outlined is based really on two things:
one, continuing to keep our economy growing stronger; and two,
exercising spending restraint. And Congress has met the top-line
budget numbers that we have outlined over the previous couple years,
and we're confident they'll do it again this year so that we can cut
the deficit in half over the next five years.

Q Do you think the public fully understands the problem with
Social Security?

MR. McCLELLAN: Well, I think if you look at some of the recent
surveys, I know last week the Washington Post pointed out that the
American people -- that according to their survey, 73 percent, I think,
was the number, 73 percent of the American people believe it's either a
crisis or faces major problems. And so I think the American people do
understand the problems facing Social Security, but it's important to
continue reaching out to them to talk about how those problems are only
going to get worse over time, and that that is why we need to act now
to strengthen it for our children and grandchildren.

The President is going to continue going out and talking to the
American people and seniors, and saying, if you're retired, nothing is
going to change. He's going to continue reassuring seniors -- those
seniors who are currently retired and then those who are near
retirement that were born before 1950. That's important that they
recognize nothing changes for them, because I think many seniors -- and
I think you're going to have a grandfather on the panel today --
recognize the importance of strengthening Social Security for our
children and grandchildren. They want to make sure that it is around
for them, and give them the opportunity to realize an even greater
grater rate of return.

Q So this process will continue for some time?

MR. McCLELLAN: Absolutely. I mean, this process is still in the
early stages. He's only been on the road in a handful of states, or
even less. So he's going to continue going out across the country,
reaching out to the American people, talking about the problems facing
Social Security and the need to advance a bipartisan solution and to
act this year.

Q Is the discussion going to continue for a while on the same
line it's been on, which is, this is a problem, as opposed to, what are
the solutions for the solvency issue?

MR. McCLELLAN: Well, it's both, but, yes. We're still in the
early stages of this session of Congress. The President believes it's
important to go directly to the American people and talk about the big
challenges that this country faces. And one of the biggest challenges
we face is Social Security. That's why he's reaching out to the
American people all across the country. We're just in the initial phase
of that at this point.

He's going to continue reaching out, talking about the problem.
But he's also talking more about some of his ideas for strengthening
Social Security. He's talked about the importance of personal
accounts, so that younger workers can realize a greater rate of
return. He's talked about ideas that others have suggested for solving
this problem. And the President welcomes all ideas; he's made that
very clear. And he wants to advance a bipartisan solution. And so one
of the things we're focusing on today is bringing a Democrat on the
panel -- a Democratic leader, to talk about some of those ideas.

Q But when does this initial phase end, talking about the
problem, and move to the -- you know, how much longer do you think --

MR. McCLELLAN: Well, we're doing two things. One, we're reaching
out to the American people, and two, we're reaching out to members of
Congress. But there is going to be a period where the President is
going to continue traveling the country and reaching out to the
American people. I'm not putting a time line on it at this point, it's
still in the early stages right now.

Q It's safe to say months, though, and not weeks or something,
right?

MR. McCLELLAN: Oh, I think that this is an issue he will continue
to talk about. Obviously, there's a legislative process. And I think
everybody recognizes that that's going to -- it's going to take some
time to move through the process. But the President has made it very
clear he wants to get it done this year, and this is one of our highest
domestic priorities. And so, yes, he'll continue --

Q The conversations?

MR. McCLELLAN: -- for some time he'll continue reaching out to the
American people. And I expect he'll do it even throughout the
process. But this is still -- we're still in the stage of talking with
the American people about the problem and reaching out to members of
Congress to say, we welcome your ideas, too; and let's talk about how
we can work -- solve this together.

Q If the goal is to convince people who have doubts about the
problem of Social Security, why do, it seems like we go to these
rallies where people mostly seem to agree with the President. Why not
-- is there some question as to whether the President's base of support
is doubting the plan? Or at what point will you --

MR. McCLELLAN: I disagree with your characterization. One, the
President is reaching out to all Americans. This is an issue that
affects all Americans. So he's reaching out to all Americans in that
regard. Now, the American people expect us to solve problems and not
pass them on to future generations. So I think it's important to
highlight the problems facing Social Security and have a discussion
with the American people about those problems. That's what the
President's doing.

He's doing it in different ways. He's doing it by participating in
these conversations, he's doing it by sitting down with news outlets
from across the country, like he did yesterday to talk about the
challenge we face. These newspapers he sat down with yesterday are
from states that had a larger percentage of seniors. And he wanted to
make -- he wants to continue to make it clear to seniors that nothing
changes. There are some that continue to use scare tactics, and the
President is saying that leadership is about confronting problems and
finding solutions. And there are some that want to ignore the problem
or try to say there isn't a problem. That's not a solution.

Q Congressman Penny, did he come to you all, or did you go to
him?

MR. McCLELLAN: I can double-check. I mean, I'm sure we reached
out to him, but he was more than happy to participate in this.

Q Since the State of the Union?

MR. McCLELLAN: I'll double-check. I didn't -- I'll double-check
that, and you can check with me later on it.

Q He was on the commission.

MR. McCLELLAN: Yes, he was on the President's bipartisan
commission. That's correct. And he was someone the President
referenced in the State of the Union address, as you mentioned, someone
who has expressed some ideas for solving the fiscal problem facing
Social Security.